The quickest way to build for compression in a 4.0OHV is either swap
a 93-94 shortblock under your later heads.
there are MAJOR differences in the way the bottom ends are designed
between when the earlier pistons were used, and your 1997 which uses the later
"lightweight rotating assembly" which has lighter crank counterweights to match the lighter pistons used.
Frankly I'd get a '93-94 short block and put late heads on it.
but remember after you do that you'll have some issues running
regular gasoline.
I have a set of late heads set aside for my own building an alcohol engine...
as soon as commercial butanol becomes available.
as for HOW efficient? on ethanol you are rather limited as there is only about 65% as much heat energy in the fuel.
with Methanol there is about half the heat energy
but methanol doesn't need as much air to burns so you can cram three times as much of it into the engine and you get a 50% power increase.
Butanol has 92% as much energy as gasoline and burns best with increased compression >12.5:1 so you get some of the power
back, greater compression offers greater efficiency.